The Rollback Rate: Legislative Intent & Inflation

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Four decades ago, Texas lawmakers raised the rollback rate from 5 percent to 8 percent on the basis of high inflation. That inflationary environment no longer exists, giving good reason to lower the rate.

Key Points:

In 1979, state lawmakers created a rollback tax rate to help moderate tax levy growth. The rate was set at 5 percent.

In 1981, state lawmakers raised the rollback rate from 5 percent to 8 percent on the grounds that inflation was high. It was high, but it also soon fell.

Over the last 25 years, inflation has never risen above 4 percent. Over the last 12 months, inflation increased less than 2 percent. Yet the rollback rate remains at 8 percent.